Fresh Hope for Altcoins as Rare Indicator Flashes Green

Altcoins have languished under the crushing weight of the crypto downward trend for months, but that may be about to change. A rare but important sign of relief for altcoins has just shown up, increasing the chances of an altcoin season.

Crypto analyst Ash Crypto shared the indicator known as Russell 2000 which he said just hit a new all-time high. This is a small-cap U.S. stock market index composed of the smallest 2,000 stocks on the market. 

According to the analyst, altcoins usually follow the index and reaching a new all-time high suggests altcoins may follow suit. Could this be the catalyst altcoins have been waiting for to initiate the next altcoin season?

Will Altcoins See a Relief

Although the entire crypto market has been in a downturn for a few months, altcoins (any crypto asset apart from Bitcoin) have taken the brunt of the bearish trend. While the tone is usually dictated by Bitcoin, altcoins usually react to market movements more dramatically, whether positive or negative.

With the bear market that has persisted, many altcoins have lost significant percentages of their value and analysts say many may never recover from the losses. The only deviation from this trend of Bitcoin dictating market trends is the altcoin season, when altcoins massively outperform Bitcoin, led by Ethereum.

Investors have long expected this altcoin rally, but it has not happened in this cycle as Bitcoin doesn’t seem to have completed its own bullish cycle despite gold soaring, which usually leads to a Bitcoin rally. In fact, Bitcoin has just lost critical support at $90,000 and analysts believe it is likely to drop substantially. 

However if this Russell 2000 plays out in favor of altcoins as has been in the past, altcoins may be set to see a new rally despite Bitcoin’s prevailing weakness. 

No Sign of Relief for Altcoins Yet

While the Russell 2000 may be reliable and hold the potential to kickstart an altcoin season, there’s hardly any sign of relief for altcoins yet. Altcoin seasons are usually marked by a drop in Bitcoin’s dominance which is currently at 58.

The dominance has dropped to this level in the past but no altcoin season started. However, it may be too early to judge the effect of the index on altcoins which usually follow it, as this may take some time.

More Must-Reads:

• Bitcoin Dominance Echoes 2021 Crash – Is Altcoin Season Imminent?
• Is an altcoin season imminent? This pundit thinks so
• Altcoin momentum stalls as Bitcoin Dominance flashes fresh upturn